Article ID: | iaor20131348 |
Volume: | 64 |
Issue: | 2 |
Start Page Number: | 748 |
End Page Number: | 755 |
Publication Date: | Feb 2013 |
Journal: | Computers & Industrial Engineering |
Authors: | Wee Hui-Ming, Crdenas-Barrn Leopoldo Eduardo, Wang Wan-Tsu |
Keywords: | backorders, economic order, lot sizing |
This paper revisits the work by Cárdenas‐Barrón (2009). The optimal solution condition is analyzed using the production time and the time to eliminate backorders as decision variables instead of the classical decisions variables of lot and backorder quantities. This new approach leads to an alternative inventory policy for imperfect quality items when the optimal production time is less than the optimal time. This is a new method that has not been explored before; it improves and complements the work by Cárdenas‐Barrón (2009) and provides interesting managerial insights. An easy to apply solution procedure is provided to obtain the optimal policy. Finally, numerical examples are solved to illustrate our results.